17 February 2016
An american national having a proprietory firm in USA is also a director and share holder of a Indian Pvt Ltd Co. providing IT Services. If the Indian company provides any services to the US company of the director and the US Company in turn sells those services to his clients in US , will the services provided by the Indian company will be considered as Export. Is the transaction liable to Service Tax.
17 February 2016
Services provided to an non resident outside the taxable territory, even if provided through internet, can be export of services, if the non resident has no office or representative in the taxable territory and the consideration is received in convertible foreign exchange through proper channels.
I presume that the American is not a resident in India and is a non-executive director, nor does he have any representative or office in India. The consideratioin at market rates.
If the above conditions are satisfied then the services rendered to the Director's American Company, (which also has no representative or office in India), is export of service.
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